RSI Regular Divergence

1. Signal on the close of a candle, entry at the open of the next one.
2. Regular divergence between price and RSI(14): pivots 5/5 bars, 5–60 bars apart. The signal fires when the last pivot is confirmed, 5 bars after it.
3. Long on bullish divergence (price lower low, oscillator higher low); short on bearish.
4. Stop-loss beyond the last pivot by 0.5 × ATR(14).
5. Take-profit at 2 R.
6. Exit on the close of bar 30 if neither level is hit.
7. An opposite signal closes the trade at the next open and reverses.
8. If stop and target are both touched in one candle, the stop counts.
9. Fees 0.1% per side, slippage 0.05% on market fills.

• Drawing the divergence after the fact: on a finished chart the pivot is obvious, in real time it is known only `right` bars later. That delay is exactly what this backtest enforces.
• Picking the pivots that fit: lines from any high to any high will always find a divergence. Fixed pivot rules and a fixed distance window remove the choice.
• Ignoring costs: a small edge per trade disappears when a strategy trades hundreds of times a year.
• Trusting a handful of trades: fewer than 30 trades say almost nothing about a strategy.

No open position on the last closed candle.